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Top News In கவர்னர் அலெஜாண்ட்ரா டியாஸ் டி லியோன் Today - Breaking & Trending Today

Banxico Holds Key Rate, Betting Inflation Spike Is Temporary

(Bloomberg) Mexico’s central bank voted to hold its key interest rate near a five-year low, betting that a price spike that sent the inflation rate to more than double its target will be temporary.Banco de Mexico, led by Governor Alejandro Diaz de Leon, kept borrowing costs at 4% on Thursday, after consumer price increases hit 6.1% in April, far beyond its 3% target. All 24 economists surveyed by Bloomberg predicted the decision, as board members seek to keep injecting crucial stimulus even while prices climb.“In a highly uncertain environment, the risks for inflation, economic activity and financial markets pose major challenges for monetary policy,” the bank’s board wrote in a statement. “Given the recent shocks that have affected inflation, it is necessary for the adjustment in relative prices to take place in an orderly manner so that an impact on price formation and inflation expectations is avoided.”The board also said that while inflat ....

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Robust Rebound Won't Augur End to Stimulus: Central Bank Guide


Robust Rebound Won’t Augur End to Stimulus: Central Bank Guide
This content was published on April 19, 2021 - 23:01
April 19, 2021 - 23:01
(Bloomberg)
The aggressive rebound in global economic growth still isn’t enough for most of the world’s central banks to pull back on their emergency stimulus.
In Bloomberg’s quarterly review of monetary policy covering 90% of the world economy, the Federal Reserve, European Central Bank and Bank of Japan are among the 16 institutions set to hold interest rates this year.
The outlook suggests officials still want to guarantee the recovery from last year’s coronavirus recession by maintaining ultra-low borrowing costs and asset-buying programs. That may require them to accept any accompanying bounce in inflation. ....

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Mexico's Central Bank Sees the Economy Growing 4.8% This Year


Max de Haldevang, Bloomberg News
Public benches blocked off with caution tape in Puebla, Puebla state, Mexico.
, Bloomberg
(Bloomberg) Mexico’s central bank improved its outlook for Latin America’s second-largest economy, saying it will grow faster than expected this year after a recovery at the end of 2020.
In its main scenario, the central bank known as Banxico expects Mexico to grow 4.8% this year versus a 3.3% increase forecast three months ago, according to a quarterly inflation report posted to the bank’s website Wednesday. The economy could expand in 2021 as little as 2.8% and as much as 6.7%, Banxico said, mentioning two other scenarios. ....

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